Sarcos Corp., which makes robots and assistive devices including powered exosuits, today said it will become a publicly listed company through a merger with Rotor Acquisition Corp. Salt Lake City-based Sarcos has been working to commercialize its Guardian XO full-body, industrial exoskeleton by the middle of next year.
“Sarcos is building advanced mobile industrial robotic solutions that will advance the future of the workforce,” stated Ben Wolff, chairman and CEO of Sarcos. “We have a strong foundation and a clear road map to launch our next-generation highly dexterous mobile industrial robotic systems that are intended to increase productivity, save lives, and reduce injuries.”
“Our transaction with Rotor accelerates our access to resources that will facilitate our broad product launch and enable us to execute potential bolt-on acquisitions to fortify our platform and enhance our capabilities,” he added. “Rotor brings significant experience in the industrial and consumer sectors and a shared vision for the future of robotics and the workforce.”
Sarcos designs for human augmentation
The company said its mobile, dexterous robotic systems are designed for dynamic or unstructured environments. It has focused on augmenting humans for non-repetitive tasks where human decision making is essential. Sarcos added that its exoskeletons are designed to enhance individual productivity, making physically demanding jobs safer and accessible to more people, alleviating skilled worker shortages, and reducing the economic and social impact of occupational injuries.
Sarcos has been developing its technologies for more than 30 years and claimed to have a “robust” patent portfolio. The company also plans to release its Guardian XT force-feedback industrial teleoperated robot in 2022. The IEE Robotics and Automtaion Society last month named the Guardian XO a 2021 Product Innovation Award winner.
Sarcos Robotics said its products can be applied in the aerospace, automotive, logistics, defense, maritime, oil and gas, power and utilities, construction, and manufacturing industries. It noted that the total addressable labor market in U.S. industrial sectors alone is approximately $147 billion. The company plans to use the investment to expand its product availability globally and recently announced a memorandum of understanding to introduce its products to the Middle East and Africa.
Sarcos will offer its products through a Robotics as-a-Service (RaaS) model and said it has strong engagement and support from key strategic partners and potential customers, including several Fortune 100 companies.
“In January of last year, we were proud to announce our partnership with Sarcos Robotics to bring its cutting-edge products to our frontline teams,” said Ed Bastian, CEO of Delta Air Lines. “Delta’s employees are the key ingredient to our success, and we are committed to reducing on-the-job injuries as well as fostering workforce diversity and improving worker longevity for a healthier and safer team. My enthusiasm for Sarcos’ potential has only grown since then as we continue to work closely with Sarcos to turn our everyday heroes into superheroes, making their jobs safer and easier than ever.”
Upon completion of the transaction, Sarcos said it expects to have up to $496 million in cash, before expenses, and assuming no Rotor shareholder redemptions. The company plans to use its funding for the following initiatives:
- Completing the commercialization and launch of its Guardian XO and XT products
- Ramping up production to drive scale and growth
- Increasing its capabilities through bolt-on acquisitions
- Developing the company’s artificial intelligence platform to enhance the value proposition of its core products
The transaction is expected to close in the third quarter of 2021, subject to the satisfaction of customary closing conditions, including regulatory approval, the approval of New York-based Rotor’s stockholders, and a minimum cash balance including funds in trust and proceeds from the private investment in public equity (PIPE) of not less than $200 million.
PIPE investors include funds managed by Palantir Technologies Inc., Caterpillar Venture Capital Inc., Schlumberger, and JAWS Estates Capital LLC.
Upon closing, the combined company’s common stock is expected to trade on Nasdaq under the ticker symbol “STRC.” The transaction represents an enterprise value of $1.3 billion, plus a potential earnout of an additional $281 million based on the combined company’s future share trading price, said Sarcos and Rotor.
“We launched Rotor Acquisition Corp. with the goal of identifying and partnering with companies that are leveraging technology and innovation to disrupt ‘old-economy’ businesses in large and growing markets,” said Stefan M. Selig, chairman of Rotor. “Sarcos fits these criteria perfectly, and we are excited to partner with them and create value by building out the Sarcos platform and bringing the company’s robotics technology to the global workforce.”
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